At a recent event entitled The Next Generation of Reforms to the Retirement Saving System, the Brookings Institution discussed several new policy proposals that would address shortcomings in retirement plans. Wharton professor and economist Olivia S. Mitchell emphasized the importance of addressing longevity risk through thoughtful retirement plan design, saying, “Many of us have a non-zero chance of living a very long time — to age 90 or beyond. We call that longevity risk. While capital market and health care costs are concerning to retirees, longevity risk can lead people to outlive their savings.”
Professor Mitchell and Joshua Gotbaum’s SECURE 3.0 proposal, Restoring Lifetime Income to Retirement Plans as the Default, recommends automatic partial annuitization into defined-contribution plans to help ensure reliable income for retirees.
Read the proposals here: SECURE 3.0; A Brookings proposal series
Watch the event here: The next generation of reforms to the retirement saving system
